Empirical Industrial Organization
Enseignant responsable :
- DANIEL HERRERA
Description du contenu de l'enseignement :
In this course we will cover mainstream empirical industrial organization methods. The main goal is to provide a set of tools necessary to undertake empirical analyses typically performed in Empirical Industrial Organization. Most methods that will be reviewed in this course are not limited to empirical IO, but can be used in a variety of different fields such as health, finance, and environmental economics. The course will consider reduced-form estimation papers, seeking to provide insights from data to understand how markets work. To generate policy-relevant counterfactuals, the course will also deal with structural estimation of supply and demand models. Reduced and structural econometrics methods requires the use of programs such as Matlab. Practical tutorials will ensure the implementation of the materials provided in the course.
Pré-requis recommandés :
Basic programming skills on Matlab or similar software.
Pré-requis obligatoires :
Theoretical Industrial Organization and advanced econometrics.Coefficient : 2
Compétence à acquérir :
After having attended the classes, the students will have an overview of seminal and recent papers in empirical IO; understand core empirical methods and the data requirements for each method to be implemented. They will also have a working knowledge on Matlab.
Bibliographie, lectures recommandées
Entry models and market structure: estimation of fixed costs
- [***] Berry, S., & Reiss, P. (2007). Empirical models of entry and market structure. Handbook of industrial organization, 3, 1845-1886.
- [***] T. Bresnahan and P. Reiss, “Econometric Models of Discrete Games,” Journal of Econometrics, 1991a.
- [***] T. Bresnahan, and P. Reiss, “Entry and Competition in Concentrated Markets,” Journal of Political Economy, 1991b.
- [***] S. Berry, “Estimation of a Model of Entry in the Airline Industry,” Econometrica, 1992.
- S. Berry and J. Waldfogel, “Free Entry and Social Inefficiency in Radio Broadcasting,” RAND Journal of Economics, 1999.
- O. Toivanen, and M. Waterson, “Market Structure and Entry: Where’s the Beef?” RAND Journal of Economics, 2005.
- K. Seim, “An Empirical Model of Firm Entry with Endogenous Product–Type Choices,” RAND Journal of Economics, 2006.
- Verboven, F., & Schaumans, C. Entry and competition in concentrated markets with product differentiation. Review of Economics and Statistics, 97(1), 195-209, 2015
- P. Jia, “What Happens When Wal-Mart Comes to Town: An Empirical Analysis of the Discount Retail Industry,” EMA, November 2008, 1263-316.
- M. Mazzeo, “Product Choice and Oligopoly Market Structure,” RJE, Summer 2002, 221-42.
- Schaumans, C. and F. Verboven (2008), "Entry and Regulation: Evidence from Health care Professions," RAND Journal of Economics, 39(4), pp. 949–972.
Estimation of demand and marginal costs
- [***] Steven T. Berry, “Estimating Discrete-Choice Models of Product Differentiation,” Rand Journal of Economics, 25, 242-262, 1994.
- [***] Berry, S., Levinsohn, J., & Pakes, A. (1995). Automobile prices in market equilibrium. Econometrica: Journal of the Econometric Society, 841-890.
- [***] A. Nevo, “Identification of the Oligopoly Solution Concept in a Differentiated– Products Industry,” Economics Letters, 1998.
- [***] Nevo, A. (2000). Mergers with differentiated products: The case of the ready-to-eat cereal industry. The RAND Journal of Economics, 395-421.
- [***] A. Nevo, “Empirical Models of Consumer Behavior,” Annual Review of Economics, 2011.
- Berry, S., & Pakes, A. (2007). The pure characteristics demand model. International Economic Review, 48(4), 1193-1225
- Goldberg, P. K. (1995). Product differentiation and oligopoly in international markets: The case of the US automobile industry. Econometrica: Journal of the Econometric Society, 891-951
- A. Goolsbee and A. Petrin, “The Consumer Gains from Direct Broadcast Satellites and the Competition with Cable TV,” Econometrica, 2004.
- C. Knittel and K. Metaxoglou, “Estimation of Random–Coefficient Demand Models: Two Empiricists’ Perspective,” The Review of Economics and Statistics, 2014.
- A. Nevo, “A Practitioner’s Guide to Estimation of Random–Coefficients Logit Models of Demand,” Journal of Economics & Management Strategy, 2000b.
- A. Nevo, “Measuring Market Power in the Ready–To–Eat Cereal Industry,” Econometrica, 2001.